Ahead of Budget 2015, PAC chief says Putrajaya can’t continue ‘spending spree’
The Malay Mail Online – 2 hours 45 minutes agoRELATED CONTENT
- Public Accounts Committee (PAC) chairman Datuk Nur Jazlan Mohamed says taking some …
KUALA LUMPUR, Oct 10 ― The head of a parliamentary watchdog wants the federal administration to pursue “underperforming” government entities in Budget 2015 to plug leakages, instead of just emptying out its coffers to cushion the blow of rising costs to Malaysians.
Public Accounts Committee (PAC) chairman Datuk Nur Jazlan Mohamed suggested taking some of these government-linked companies private, saying it would not only help them stimulate performance and regain their competitive edge, but would also help trim Putrajaya’s budget deficit.
“My point is this ― you cannot continue going on a spending spree for aids like BR1M (Bantuan Rakyat 1 Malaysia) for which billions are being spent.
“Where are the returns going to come from? There must be a proper plan to make sure this expenditure does not incur losses for the government instead,” Nur Jazlan told the Malay Mail Onlinewhen commenting on his wishlist for Budget 2015, which will be tabled later today.
The Pulai MP warned that if the government was to go on with its carefree spending for the next five years, it would not likely achieve a balanced budget.
On August 12, Prime Minister Datuk Seri Najib Razak, in his 1Malaysia blog post entitled “Budget 2015: Let’s Continue Our Efforts”, announced that the RM1,200 annual payouts under his BR1M initiative will continued to be disbursed for the next five years.
On the topic of affordable housing, Najib had also said that RM1 billion has been allocated under the 1Malaysia People’s Housing Project (PR1MA) to build 80,000 houses priced at 20 per cent below the market price.
This is in addition to an injection of funds to provide 26,122 affordable housing units.
“How are we going to keep paying for everything?” Nur Jazlan asked.
He lamented that Putrajaya's problem lies in its penchant for executing too many plans at the same time, at the risk of domestic borrowing.
Nur Jazlan, a chartered accountant, said that BR1M and PR1MA are costly initiatives and a long-term plan should be put in place to ensure they do not become mere “giveaways”.
He also suggested that PR1MA be privatised, noting that there are several other government agencies that appear to be serving the same purpose.
“A lot of internal borrowings are going on to fund efforts like these and a proper plan needs to be put in place to prevent debt and deficit,” he added.
Nur Jazlan has issued similar suggestions in the past.
In June, he urged Putrajaya for a review of government-linked companies (GLCs) to evaluate the financial returns they provide the government amid longstanding procurement problems in bodies like Felda and Felcra.
Nur Jazlan had then advised Putrajaya to study if GLCs are still fulfilling their objectives and if they are properly managed, besides looking at their financial returns to the government, citing companies like Felda, Felcra, UDA Holdings, the Malaysian Cocoa Board, the Malaysian Rubber Board, KTM and Kemubu Agricultural Department Authority (KADA).
He said that despite some of the GLCs being incorporated decades ago, the returns have not shown promising performance.
Putrajaya’s federal land development authority,Felda has been mired in several controversies since Najib took office in 2009.
The most notable being the Felda Global Venture Berhad’s (FGV) proposed buyout of the remaining 51 per cent stake in the world’s largest palm oil producer, Felda Holdings Bhd (FHB), which critics said is detrimental to its owners, a Malaysian farmers’ cooperative.
While financial analysts provide an optimistic forecast that the RM2.2 billion deal would work in FGVH’s favour critics felt that Koperasi Permodalan Felda, (KPF), which represents some 113,000 settlers, would lose its cash cow and face an uncertain future.
Najib will table Budget 2015 in Parliament at 4pm today.
